Whether your finances took a turn for the better or for the worse in 2013, there’s no better time than the present to ensure that things look rosy in 2014. Take the time to research each of these categories and determine what you can do to improve your finance over the next 12 months.
• Pay down debt
If you have debt, one of your first New Year’s resolutions should be to pay down your debt this year. Challenge yourself to go beyond the minimum payments and focus on getting your accounts paid off as soon as possible. If you have too many, start with the lowest amount and gradually going high.
• Have an emergency fund
Now may be the time to start setting aside a real emergency fund. I strongly recommend that you set aside cash to cover anywhere from 3 to 6 months of your expenses in an emergency fund, but you can decide for yourself how much you’re comfortable with. Set a savings goal this year and keep track of your progress monthly.
• Retirement planning
No matter your age, you need to start thinking about retirement. Unfortunately, many of us are lacking in the retirement savings department. Keep at-least 20% of your income in retirement fund.
• Life insurance
Insure yourself adequately by buying an online term insurance. Sum assured should be not less than twelve times of your annual income.
• Write your will
Whether you have a family or you’re a single person, setting up a will is a wise move. Resolve to meet with your attorney and Financial Planner to get your will in place.
• Children’s Education
If you’re a parent, now is the time to start planning for how you’ll pay for your child’s college education. Don’t skip this important personal financial planning.
• Compare prices on insurance
Encourage everyone to compare their car insurance prices with both their existing companies and competitors on an annual basis. This is also a good time to make sure that your coverage levels meet your current needs: did you buy a new piece of LED TV in 2013? If so, you may need to add more to your householder’s policy to cover the new piece.
• Educate yourself
Although you may not be an investment expert, or a financial guru, you need to take the time to educate yourself in all things on personal finance. One of the easiest ways to do this is to simply read. Check out the popular personal finance websites to stay up-to-date on the latest news items.
• Pay down debt
If you have debt, one of your first New Year’s resolutions should be to pay down your debt this year. Challenge yourself to go beyond the minimum payments and focus on getting your accounts paid off as soon as possible. If you have too many, start with the lowest amount and gradually going high.
• Have an emergency fund
Now may be the time to start setting aside a real emergency fund. I strongly recommend that you set aside cash to cover anywhere from 3 to 6 months of your expenses in an emergency fund, but you can decide for yourself how much you’re comfortable with. Set a savings goal this year and keep track of your progress monthly.
• Retirement planning
No matter your age, you need to start thinking about retirement. Unfortunately, many of us are lacking in the retirement savings department. Keep at-least 20% of your income in retirement fund.
• Life insurance
Insure yourself adequately by buying an online term insurance. Sum assured should be not less than twelve times of your annual income.
• Write your will
Whether you have a family or you’re a single person, setting up a will is a wise move. Resolve to meet with your attorney and Financial Planner to get your will in place.
• Children’s Education
If you’re a parent, now is the time to start planning for how you’ll pay for your child’s college education. Don’t skip this important personal financial planning.
• Compare prices on insurance
Encourage everyone to compare their car insurance prices with both their existing companies and competitors on an annual basis. This is also a good time to make sure that your coverage levels meet your current needs: did you buy a new piece of LED TV in 2013? If so, you may need to add more to your householder’s policy to cover the new piece.
• Educate yourself
Although you may not be an investment expert, or a financial guru, you need to take the time to educate yourself in all things on personal finance. One of the easiest ways to do this is to simply read. Check out the popular personal finance websites to stay up-to-date on the latest news items.
These are eight items that I’m working on in 2014, what are your personal finance New Year’s resolutions? Wishing you all a very Happy and Prosperous New Year!
The writer is the Principal Financial Planner at EconPenny. You can chat-twit-mail him at facebook@dipankar.jakharia | twitter@d_jakharia | dipankar.jakharia@gmail.com
